Prabhat Dairy Stocks Fluctuate On Their First Day In The Market

The Maharashtra based Prabhat Dairy which listed shares on stock exchanges yesterday managed to make a positive debut, with shares closing at Rs. 116.35.

While the issue opened at the low price of Rs. 115, the stocks managed to climb to a high of Rs.118.8 during the day. According to BSE and NSE data, nearly 98.8 lakh shares were traded.

The company’s previous public offering had a weak response and the company had to extend the closing date of the IPO and cut issue prices by over 15 rupees.

What’s Prabhat Dairy?

Established in 1988, Prabhat Dairy supplies dairy products to corporate clients as well as the mass market. Major clients include Britannia, Parle, ITC Limited and Nestle.

In an interview with The Economic Times, Vivek Nirmal of the Nirmal family that set up Prabhat Dairy explains the short term goals for the company saying “Prabhat is basically targeted towards the middle of the pyramid population wherein we target basic products which form part of our daily plate like milk, curd, ghee, paneer, shrikhand, buttermilk and lassi. We are a strong central and western India player and we plan to strengthen our presence in this region for the coming three-four years by increasing the number of outlets and distributors. A slew of new products have been added to the portfolio in past one year, and we expect different variants of these products to be coming up in the next few years.”

On the other hand, it has been suggested that the issue proceeds will be used for pre-payment of loans and capital expenses.